StockMarketWire.com - British American Tobacco reported a rise in first-half profit as higher margins offset a decline in cigarette and tobacco heating products volumes.

For the six months ended June, pre-tax profit climbed to £4.59bn from £3.86bn as revenue rose 0.9% to £12.2bn.

Gross margin increased by 550 basis points to 41.5% offsetting a 6.3%, fall in volumes, which the company blamed on virus-related travel restrictions.

Cigarette volume was down 6.5% and THP volume was up 9.1%.

Looking ahead, the company maintained guidance for revenue growth in a range of 1% and 3% for the year.

US industry volumes were expected to decline by 2.5%, less than the previously expected 2.5%, driven by 'the continued resilience of consumer demand and higher trade stock levels being maintained as a result of COVID-19,' the company said.

At 8:23am: [LON:BATS] British American Tobacco PLC share price was +52.5p at 2709p



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